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Friday, October 7, 2022

The Marketing 2.0 Conference Alerts Readers Against Dangerous E-Commerce Scams

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Due to the change in consumer behavior and, in particular, the COVID-19 pandemic’s impact in 2020, e-commerce companies are gaining market share worldwide. On the other hand, the explosive growth of internet purchases has brought a spike in fraudulent operations. Online businesses are increasingly becoming simple targets for scammers in the digital age. If your e-commerce store doesn’t take security measures, scammers have a greater chance of disguising legitimate online businesses with fake websites or hacking clients’ personal information. This blog will go through various e-commerce frauds discussed at top marketing conferences, such as the Marketing 2.0 Conference, and how to avoid them.

Types Of E-Commerce Frauds

  • Account hijacking

Phishing emails trick your customers into divulging their usernames and passwords as the first stage in an account takeover fraud. This can be done by email or cleverly, such as a bogus website.

The offender uses this information to access a victim’s account, modify the password and delivery address, and then make fraudulent purchases on their behalf. This scam can go undetected for some time because many customers glance at their bank statements.

  • Identity scam

Because identity theft is a frequent e-commerce scam, it frequently makes the news. A scammer accesses a database and steals personal data such as names, addresses, and credit card numbers. Later, this information is sold to another con artist who uses it to open accounts and make purchases. You could fall prey to the original hacking and the unauthorized purchases of goods using your account with this kind of scam.

  • Refunds

When reading this blog, don’t picture your usual rogue crook in your mind. Both new and devoted customers may engage in return scams by placing an order for enough goods to activate a loyalty program or affiliate incentive, using the incentive, and then returning the original goods for a full refund. In contrast to the customer, you lose money.

  • Chargebacks

When a customer purchases from your store and contacts their card company to request a chargeback because the item was never delivered, it is known as a chargeback scam. The article was sent and received, of course, but since there is no documentation of delivery, they obtain their money back, and you receive neither a refund nor a thing.

  • Mobile Theft

Finally, we must discuss mobile fraud. The growth of m-commerce means that con scammers will soon follow. You should be informed about mobile fraud because e-wallets, alternative payment methods, digital currency, and one-touch spending are all part of mobile purchasing.

  • Fraudulent bank transfer

Be wary of who you email since dishonest thieves might wow you with how easily they can bypass your security measures, whether sending emails from compromised accounts pretending to be your suppliers or emails with. corn email addresses instead than.com addresses.

Warning Signs of Online Fraud: Prevent Scams Before They Start

The best way to prevent e-commerce fraud is to spot the red flags early enough to take preventive action. Here are several warning signs noted by the experts at the Marketing 2.0 Conference that every online store should be on the lookout for:

The billing and shipping addresses are different:

The cardholder is not getting the goods, as is frequently with identity theft and triangulation fraud.

Different orders for the same item:

High-ticket items are often the target of an e-commerce scam, and once they find one they like, they’ll use it repeatedly. It’s more about monetary value than physical value because the goods are frequently gated.

Several orders with different cards delivered to the exact location:

Experienced con artists like to switch things up since repeatedly utilizing the same stolen card information attracts unwanted attention and suspicion. Moreover, using a different credit card number is more straightforward than having items delivered to a different address.

Huge orders (significantly expedited shipping):

Scammers want to be sure that the profits outweigh the risks, just like in most crimes. Since it can be the scammer’s last, huge orders are commonly involved in e-commerce scams. Expedited delivery is used because they also want the transactions to be completed before their victims discover them as soon as possible.

Suspicious phone numbers or email addresses:

There are usually one or two gaps in identity theft defenses. The professionals at marketing events in the USA advise against being on the alert for suspect phone numbers and email addresses that don’t seem to line up.

Repeated transactions that were refused:

Everybody gets their transactions refused once or twice, but a pattern of declined transactions raises a concern. Although it may occasionally be innocent, it can also hint that someone is attempting to guess critical information they are not authorized to know.

Steps To Avoid E-Commerce Scams

  • Continue to comply with PCI

A well-known set of criteria known as the Payment Card Industry Data Security Standard (PCI DDS) ensures that organizations that store and handle credit card and cardholder information, such as e-commerce businesses, maintain a secure environment. Basic security measures are implemented due to PCI compliance, such as setting up a firewall between your internet connection and any system that stores credit card details. In the end, PCI compliance is required; thus, you must follow all applicable PCI requirements to avoid any consequences or sanctions.

  • Exercise extra caution during the holiday season

The Christmas season might be one of the most crucial times of the year for your company as more people shop online during Black Friday, Cyber Monday, and other December holidays. Customers tend to take fewer safety precautions when they are busy and preoccupied at these times.

According to an observation by experts at the Marketing 2.0 Conference, the plain truth is that during these months, many scammers rely on merchants being too busy or concerned to notice possible fraud. Be extremely cautious when receiving many rush orders, foreign orders, or small-dollar sales during the holiday season. These actions may indicate that fraudsters are trying various techniques, such as card testing fraud.

  • Establish blocklists

You might notice that specific customers have tested their credit cards with your e-commerce business if you pay for a fraud detection solution (or do it yourself). Once you’ve located these clients, add their names to an internal blocklist.

You can prevent a consumer from making further purchases from your website by adding them to a block list. Because scammers can continually use new stolen consumer identities, a blocklist isn’t a perfect solution. However, based on prior activity, a blocklist can assist you in identifying prospective fraudulent transactions before they occur.

Bottom Line

The abovementioned steps are essential to avoid becoming victims of the increasing cases of e-commerce scams. Although, experts suggest that complying with these steps is not enough to avoid scams. Both businesses and consumers must keep an open eye and look for the warning signs mentioned above. Taking appropriate action immediately will help protect people from these scams. 

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